Press Release
Consumer Groups Praise Plan to Rein in Cable Monopolies
Contact: Timothy Karr, 201-533-8838
Washington, DC -- Consumers Union, Consumer Federation of America and Free Press applauded news that a bipartisan majority of the Federal Communications Commission has committed to imposing a 30 percent national ownership cap on cable operators.
According to today's New York Times, Chairman Kevin Martin and Commissioners Michael Copps and Jonathan Adelstein plan to propose this limit as a way to rein in cable monopolies and promote more diversity and competition in the cable market.
"We are encouraged that a bipartisan majority on the Commission has recognized the pain consumers feel with cable rates rising more than twice as fast as inflation and cable unfairly discriminating against potential competitors, " said Gene Kimmelman, Consumers Union's vice president for federal and international affairs.
News of the cable ownership cap follows a vote this week that will open cable systems to meaningful new local programming opportunities through lower-cost leased channels.
"By preventing cable monopolies from overcharging -- and effectively stifling -- independent local programming on their leased channels, the Commission has taken a significant first step to restore more opportunities for local, diverse television programming," said Ben Scott, policy director of Free Press.
The consumer groups are also pleased that the FCC has committed to an expedited and improved data gathering process to determine whether cable has grown large enough to trigger additional public intervention to promote diversity of information in the cable market (the so-called "70/70 test from the 1984 Cable Act).
"It is most encouraging that a bipartisan majority of Commissioners has recognized the need to prevent the largest cable companies from growing large enough to dictate what programming American consumers have a right to watch, and whether independent and particularly minority programmers have an opportunity to distribute programming on the largest cable systems," said Dr. Mark Cooper, research director at the Consumer Federation of America.
The three groups urge the FCC to apply the same tools it is using to challenge cable monopolies -- regulations that promote diversity of ownership and content in media, and open competition for news and information -- to challenge concentration of broadcast ownership and dangerous consolidation between local newspapers and television broadcasters.
According to today's New York Times, Chairman Kevin Martin and Commissioners Michael Copps and Jonathan Adelstein plan to propose this limit as a way to rein in cable monopolies and promote more diversity and competition in the cable market.
"We are encouraged that a bipartisan majority on the Commission has recognized the pain consumers feel with cable rates rising more than twice as fast as inflation and cable unfairly discriminating against potential competitors, " said Gene Kimmelman, Consumers Union's vice president for federal and international affairs.
News of the cable ownership cap follows a vote this week that will open cable systems to meaningful new local programming opportunities through lower-cost leased channels.
"By preventing cable monopolies from overcharging -- and effectively stifling -- independent local programming on their leased channels, the Commission has taken a significant first step to restore more opportunities for local, diverse television programming," said Ben Scott, policy director of Free Press.
The consumer groups are also pleased that the FCC has committed to an expedited and improved data gathering process to determine whether cable has grown large enough to trigger additional public intervention to promote diversity of information in the cable market (the so-called "70/70 test from the 1984 Cable Act).
"It is most encouraging that a bipartisan majority of Commissioners has recognized the need to prevent the largest cable companies from growing large enough to dictate what programming American consumers have a right to watch, and whether independent and particularly minority programmers have an opportunity to distribute programming on the largest cable systems," said Dr. Mark Cooper, research director at the Consumer Federation of America.
The three groups urge the FCC to apply the same tools it is using to challenge cable monopolies -- regulations that promote diversity of ownership and content in media, and open competition for news and information -- to challenge concentration of broadcast ownership and dangerous consolidation between local newspapers and television broadcasters.
